When paying net 30, what is the best practice, deliver payment at 30 days or initiate payment at 30 days?

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If your vendor terms are net 30, the vendor expects to receive payment on the 30th day. Most count the days in the aging process from the date of invoice, though often customers work from date the invoice is received.

Of course, many companies do pay on the 30th and therefore the vendor receives payment a few days later. It depends on business decisions made by both vendor and buyer, what they agree to explicitly and implicitly.

While some consultants may counsel you to test your vendors to see what they'll tolerate, other warn that in the interest of good supplier relationships and supply chain working, it is important to pay consistently on time; if you ever hit a tough spot, your supplier is more likely to allow you a bit of leeway.

TAPN has just completed a survey on disbursement. The survey looks at when participants disburse payment, and on what date do they base their payment timing (e.g. invoice date, invoice receipt date, product receipt date, etc.) See the Disbursement Benchmarks survey results.

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